AEGIS London deploys algorithmic pricing tool amidst hardening market
AEGIS London has deployed algorithmic-led machine learning technologies to enable underwriters better evaluate, price, and manage risk amidst a hardening market.
The insurer will utilise the real-time risk monitoring features of insurtech Concirrus’ Quest Marine platform to allow underwriters to have a continuous view of risk and respond to protect the insured in changing circumstances.
Leveraging big data, Quest Marine derives the behavioural factors behind risk and applies them, along with static data, to predict accurately the expected loss and premium adequacy on an account.
AEGIS London utilise Concirrus’ new market model that draws on insight and learnings from across the insurance industry to provide valuations as opposed to a bespoke build from specific claims data.
According to the insurer, the results drawn from the model are more reflective of the overall market, yielding further accuracy in the qualification of risk factors. Underwriters also receive a comprehensive understanding of individual vessel risk ratings and how they affect each valuation.
Jonathan Humm, class underwriter – hull and war, AEGIS, said: “In addition to our highly successful quote and bind platform, OPAL, this is another great stride towards digitalising our business. Working with organisations like Concirrus accelerates our strategic deployment of tools that enable underwriters to apply their extensive expertise to a changing landscape. The application of behavioural factors to the evaluation of risk allows for further differentiation at individual vessel level, giving us a clearer understanding of performance and allowing us to better tailor products and coverage to our clients’ needs.”
Andrew Yeoman, CEO of Concirrus, added: “AEGIS London are no strangers to digital working methods and it’s great to be working with them on the application of behavioural insight on pricing. With our transparent approach, AEGIS London can identify what risk factors are driving the outcome and, if written, manage their influence. The market model is a powerful example of what the InsurTech sector can deliver to an industry that’s rapidly changing its core working practices.”
